Credit Risk

ABELIAN’s Credit Risk Management solution helps banks, credit unions and financial services improve risk-adjusted profitability through better lending decisions, effective portfolio monitoring and management as well as efficient capital allocation whilst staying compliant with ever more stringent regulatory standards.

It comprises specialized risk consulting which provides a standardized approach to assess customers’ credit worthiness, the ability to monitor credit portfolios with advanced risk analysis and stress testing.

 Overview

The impact of the current economic crisis underlines the needs for financial institutions that provide access to credit to assess and mitigate their credit risks effectively.  In light of this, the Basel II implementation, and more so the implementation of a Credit Risk Management framework, needs to be carried on in a holistic manner to help financial institutions gain strategic benefits to deliver better value for customers and enhanced profitability for shareholders. 

ABELIAN’s Credit Risk analytical solutions use rigorous data analysis and statistical modelling to understand, estimate and predict consumer credit risk and help you make decisions that optimize your business objectives.  Some of our solutions include:

Credit Approval Processing: Estimates probability of default (PD) and improves operational efficiency by using a streamlined process which free up resources for more skilled work.

Credit Compliance & Monitoring: Estimates loss given default (LGD) and exposure at default (EAD) and provides extended covenant monitoring which helps banks to act early on warning signs, therefore increasing credit transparency and reducing losses.

Risk Modelling: Assesses risk and forecasts future losses using the borrower, collateral and segment specific risk rating models along with the macro-models, which helps to make better  credit decisions and price the expected risk more accurately.

Risk Adjusted Loan Pricing: Allows the bank to make sure that it is being compensated for the risk that it is assuming when it brings on different relationships on the books. The risk adjusted costs include expected loss and the cost of capital and therefore give the full risk picture enabling more informed lending decisions

Market Risk Modelling: VAR, Monte Carlo

Economic Capital Modelling:

Stress Testing: